India’s electric mobility sector is gaining significant momentum, with electric vehicle (EV) sales reaching an all-time high of 3,27,901 units in July 2026, marking a 66% year-on-year increase, according to the Federation of Automobile Dealers Associations (FADA). Nearly one in every eight vehicles sold during the month was electric, highlighting the accelerating adoption of EVs across the country.
More than 24.5 lakh EVs were sold in FY2026, while the number of public charging stations across India has surpassed 27,000. As EV adoption continues to expand, industry leaders have called for stronger government support for smart-grid infrastructure, domestic battery manufacturing and incentives, fleet electrification, and battery recycling to build a resilient and scalable electric mobility ecosystem.
Industry Calls for Stronger Domestic Battery Supply Chain
Vinayak Walimbe, Managing Director, India Energy Storage Alliance (IESA), said India has an opportunity to establish a self-reliant and globally competitive battery supply chain as EV adoption accelerates.
He highlighted the proposed incentive scheme for domestic battery components as an important step toward developing upstream manufacturing capabilities, including cathode, anode, and separator production.
Walimbe called for faster government action on R&D collaboration, strategic mineral development, and workforce skill-building to strengthen India’s battery manufacturing ecosystem.
Smart Grid Infrastructure Key to Mass EV Adoption
While battery manufacturing incentives remain important, industry stakeholders have emphasised that large-scale EV adoption will also require a modern and digitally enabled electricity grid.
Kumar M, Founder & CEO, Smart Grid Analytics, said India’s grid infrastructure must evolve alongside the country’s energy transition as EVs become increasingly important to decarbonisation.
He highlighted the need for an AI-driven, digital grid capable of integrating solar, wind, energy storage, and EVs at scale. Investments in digital infrastructure, automation, and real-time intelligence, he said, will be critical to maintaining grid stability and enabling commercial returns from the energy transition.
Last-Mile and Fleet Operators Drive EV Adoption
The growth of electric mobility is also being supported by innovation in the last-mile delivery and fleet segments. Delivery operators, logistics startups, and fleet entrepreneurs are increasingly contributing to EV adoption across Indian cities.
Sandeep Mukherjee, CEO, BLive, said riders and fleet operators are among the key drivers of the transition to electric mobility. He called for policies that support these entrepreneurs through innovative ownership structures and fleet models, enabling more businesses to transition to electric vehicles.
Battery Recycling Gains Importance Amid Rising EV Demand
With demand for lithium-ion batteries increasing across both electric mobility and renewable energy applications, industry leaders are also calling for stronger measures to secure battery materials and establish a circular economy.
Akhilesh Bagaria, Co-Founder, NavPrakriti, said recycling and refurbishing end-of-life batteries should become central to India’s e-mobility strategy. Strengthening battery recycling and second-life applications could help reduce dependence on imported critical minerals while limiting the environmental impact of spent batteries.
He recommended stronger policies and incentives to ensure used batteries can be recovered and reintegrated into the battery value chain.
Industry Pushes for Coordinated EV Policy Action
The record EV sales in July underline the rapid expansion of India’s electric mobility market. However, industry stakeholders say sustaining this growth will require coordinated policy action across smart-grid infrastructure, battery manufacturing, critical minerals, recycling, and fleet innovation.
With affordability increasingly supporting mass adoption and charging infrastructure expanding nationwide, industry leaders believe investments across the broader EV ecosystem will be essential for India to move from rapid adoption to a more resilient and globally competitive electric mobility market.
